The Reserve Bank of India (RBI) on Thursday issued draft guidelines on classification of wilful defaulters, expanding the definition of the term and mandating lenders to complete the process of identifying and tagging borrowers as wilful defaulters within six months of loans turning bad.
Apart from various judgements by high courts and the Supreme Court, the regulator said it has received suggestions from banks and other stakeholders on the matter. The new draft provisions would apply to banks, non-banking financial companies (NBFCs) and all-India financial institutions like the Export-Import Bank of India (Exim Bank) and the National Bank for Agriculture and Rural Development (Nabard).
A borrower can be labelled a wilful defaulter for defaulting on repayments despite having the capacity to make them. This would also include those who have diverted or siphoned off borrowed funds. That apart, those who fail to infuse equity despite agreeing to do so, and having the wherewithal to do so, would also come under this definition. It would include outstanding loans of ₹25 lakh or more.
Bu hikaye Mint Mumbai dergisinin September 22, 2023 sayısından alınmıştır.
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Bu hikaye Mint Mumbai dergisinin September 22, 2023 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
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